India has one of the largest diaspora, with over 30 million Indians overseas. Indians in the UK alone number approximately 1.9 million, contributing significantly to the UK economy, especially in finance, health, and IT. With strong family ties, most NRIs remit money gifts frequently to their family members in the UK. Maharashtra, Punjab, Gujarat, Delhi, and Kerala lead remittances, with London, Leicester, Birmingham, and Manchester being major receiving metropolitan areas. This article discusses the growing trend in remitting gift money to the UK from India and what it means economically.
Indo-UK Economic Relations
India and the UK enjoy a strong economic connection, with UK investment in India reaching £17.4 billion in 2023, equivalent to 0.9% of the UK outward FDI stock. There are over 635 UK companies in India with a turnover of INR 4,888.4 billion (£51 billion) and employing 666,992 individuals. Conversely, Indian investment in the UK was £13.1 billion in 2023, with a record number of 971 Indian-owned business entities with £68.09 billion in revenue. India was the UK’s 11th largest trade partner in Q3 2024, contributing a 2.4% share in total UK trade. Recent statistics show a 121% surge in UK-India business activity, with the two countries concentrating in areas like advanced manufacturing, clean energy, and financial services in their trade talks. The increased trade is a reflection of the deepening economic link and collaborative expansion opportunities between India and the UK.
Modes of Sending Gift Remittances to UK
1. Cash: The Old-School, But
Let us take the following scenario for instance: You’re shipping cash through postal or courier service in hopes it will reach its destination intact. While it might seem easy, shipping physical cash abroad is full of risks of theft, loss, or damage. While tracking and insurance can be a bit of a comfort, in the digital age, there are safer, easier options.
Use when: Cash transfers should be your last option if other digital alternatives are not an option, but be extremely cautious of the risks.
2. Gift Cards: A New Alternative
Shipping a gift card to the UK is a twist in itself—it is no longer just about the money, but about giving the other person the power to choose what they need. Electronic gift cards can be obtained from the majority of international shops and sent to the other person’s email inbox. The process is particularly useful for special occasions, allowing your friends to enjoy a personalized experience when shopping.
Pro Tip: Make the gift card usable in the UK to avoid any surprises.
3. Certificates of Deposit (CDs): Ideal for Long-Term Planning
In case you want to save or invest for somebody, a Certificate of Deposit (CD) can be a suitable option. You can purchase a CD from Indian banks or NBFCs and remit it to the beneficiary in the UK. The beneficiary can encash it at maturity time. CDs offer more interest than savings accounts, but there is a lock-in period of usually 1 to 5 years.
Best for: People who are planning for long-term financial security rather than short-term cash needs.
4. Wire Transfers: Fast and Safe
Wire transfers remain a popular choice for international money transfers. They’re accepted everywhere, secure, and relatively quick, with most transfers arriving in 1-2 business days. A wire transfer can be made through your bank or a money transfer specialist. Just be aware of fees and exchange rates, which will vary significantly between providers.
Expert Tip: Before you send, calculate the total cost, including the fees you don’t see, to get the best price.
5. Money Transfer Companies: The Modern Solution
These specialized money transfer organizations have made money transfer abroad easier. Banks apart, such organizations typically offer competitive exchange rates, lower charges, and faster turnaround times. A perfect example is moneyHOP, which not only simplifies international money transfer but also offers real-time tracking, ensuring your money reaches the destination safely in time.
Why Choose This? It is the ideal choice for anyone looking for speed, openness, and value for money.
Save big on your every international money transfer!
Send money at the lowest exchange rates & ZERO convenience fees with moneyHOP.
Comparison of Cross-Border Payment Methods
| Parameter | Bank Transfers | HOP Remit by moneyHOP | Debit/Credit Cards | Forex Card | Demand Draft |
| Transfer Speed | 3-5 days | 24-48 hours | 1-3 days | 1-3 days | 5-10 days |
| Exchange Rate | Moderate | Low | High | High | Moderate |
| Convenience | Moderate | High | High | High | Low |
| Fees | High | Low | Moderate to High | Moderate | Low |
| Security | High | High | Moderate | High | High |
| Transaction Limits | High | Flexible | Moderate to High | High | Low |
| Customer Support | Moderate | High | High | Moderate | Low |
Documents Required For Remitting Gift Money To The UK
The documents required for remitting gift money to the UK from India may vary depending on the money transfer service you use. However, some of the common documents required include:
- Passport: Passport number
- Proof of Identity: Government-issued ID, such as driver’s license or PAN card
- Gift Letter: Letter stating that the money is a gift
- Recipient’s Details: Full name, address, and bank account information
Make sure to reach out to the money transfer service you’re using and find out what documents they specifically need. You might have to submit paperwork like a marriage certificate or birth certificate if you’re transferring money to your spouse or child.
Calculation of TCS on Remittances
| Type of Remittance Abroad | TCS Rate & Threshold |
| Education via Loan | 0% – No TCS applicable, regardless of amount, if funded through an education loan from a specified financial institution. |
| Education (Self-Funded) | 5% on amounts exceeding ₹10 lakh per financial year. |
| Medical Treatment | 5% on amounts exceeding ₹10 lakh per financial year. |
| Overseas Tour Packages | 5% on amounts up to ₹10 lakh; 20% on amounts exceeding ₹10 lakh. |
| Other Purposes (e.g., Gifts, Investments) | 20% on amounts exceeding ₹10 lakh per financial year. |
Here are a few additional points to keep in mind:
- As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year. An individual can remit multiple times during the year for various purposes permitted under the LRS limit. However, the total amount of all such transactions must not exceed USD 2,50,000 in a Financial Year.
- It’s worth mentioning that the TCS on remittances is applicable even if the amount is sent to a close family member.
Rates & Fees
The charges and fees for sending gifts from India to the UK will vary based on the following factors:
- The specific amount of money being sent
- The chosen method of sending
- The bank or money transfer service being utilized
| Method | Flat Fee | Exchange Rate Margin |
| Banks | Rs. 500-1,000 | Variable |
| Money Transfer Companies | Rs. 300-500 | Variable |
| HOP Remit by moneyHOP | Rs. 200 | Competitive |
| Online Remittance Platforms | Rs. 100-200 | Competitive |
Why choose HOP Remit?
HOP Remit by moneyHOP is an instantaneous, cost-effective, user-intuitive, and contactless international remittance service that is tailor-made to serve Indians. It provides customers with complete transparency and significantly reduces the total transaction costs of sending money abroad. The HOP Remit platform represents the perfect concoction of a fintech’s agility and the security observed in a bank.
Here Are Some Features That Make HOP Remit Different:
1. Best Exchange Rates, Always!
At HOP Remit, we don’t just match market rates—we strive to beat them! Our constantly updated exchange rates ensure you always get the most for your money. After all, every rupee counts!
2. No Hidden Charges—What You See Is What You Pay!
We believe in full transparency. With HOP Remit, you’ll never encounter hidden fees or unexpected costs. When we say zero hidden charges, we mean it. No surprises—just honest, upfront pricing.
3. Lightning-Fast Transfers in Just 48 Hours!
We know time is money. That’s why we process most transactions within 48 hours, ensuring your money reaches its destination as quickly as possible. Fast, reliable, and hassle-free!
4. 24/7 Availability—Because Life Doesn’t Stop
Need to send money at midnight or on a holiday? No problem! Our services are available round-the-clock, 365 days a year. Whenever you need us, we’re here for you.
5. Lock in Exchange Rates for Up to 24 Hours!
Don’t let market fluctuations catch you off guard. With our 24-hour rate freeze option, you can lock in a great rate and enjoy peace of mind knowing your transaction amount will remain the same.
Also read: Easy Way To Send Living Expenses to UK From India
5 Simple Steps To Transfer Gift Money With HOP Remit
- Open Your HOP Remit Account: It is as simple as pie to get started. Just register with your email address and phone number. It is quick, and you will be up to send money in minutes.
- Enter the amount you intend to send: Once you’re inside, go ahead and input the amount you’re looking to transfer. Choose the currency, select the transfer purpose, and you’re halfway there.
- Double Check Your Details (Super Simple!): We’re security focused, so we just ask for a quick KYC (Know Your Customer) check. Just give us your basic details—name, birth date, and address—and share a valid identity document (Aadhaar or PAN card). Piece of cake, and you’ll be live with the full capabilities of the platform in no time.
- Finally, complete the details of your beneficiary including his or her name, address, and banking information. Depending on the purpose, we might require one or two other documents, for instance, a proof of relationship or a bank statement.
- Pay up and you’re done: Choose your payment mode—net banking, credit/debit card, or UPI—and go ahead with the payment. The money will be in the process of being transferred, typically in hours, depending on the payment gateway and the country.
Who Are All Considered As Close Relatives?
The following are considered to be close relatives:
- Husband and Wife
- Father (Provided that the term “Father” includes step-father)
- Mother (Provided that the term “Mother” includes the step-mother)
- Son (Provided that the term “Son” includes the step-son)
- Son’s wife
- Daughter
- Daughter’s husband
- Brother (Provided that the term “Brother” includes the step-brother)
- Sister (Provided that the term “Sister” includes the step-sister)
Who All Do We Serve?
| Customer | Description |
| Overseas university students | Send your university fees and living expenses with no hassle |
| International Travelers | Pay for your accommodation and itinerary in advance |
| Overseas family/guardians | Send gifts/maintenance money to your family in another country |
| Medical tourists | Pay for your treatments in another country in advance |
| Business travelers | Facilitate business travels like a pro with fully planned and paid advanced bookings |
Why pay more for international money transfers when moneyHOP is here?
- NO hidden fees
- ZERO convenience fees
- Real-time updates
- Lowest exchange rates
Summing Up
The economic link between India and the UK remains vibrant, driven by finance, trade, and flows. The steady stream of Indian students in the UK has been a strong contributor towards remittances, supported by increasing disposable income and ease in availing loans in the aftermath of the pandemic. With the increased desire for quality education and global opportunities, cross-border flows will be a central driver in shaping this economic connection.
In this dynamic environment, HOP Remit by moneyHOP is a trusted ally, sending hassle-free remittances to the UK with competitive rates and negligible charges. With simple international remittances, HOP Remit not just widens financial inclusion but also strengthens the long-standing relationship between India and the UK, resulting in a hassle-free global mobility in the future.
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